RPT-FEATURE-Unrest threatens Bangladesh's key garment export

"Every time there is violence, buyers phone me and I have tocool them down by saying 'Don't worry, we will manage. Shipmentschedules will be met.'"

A country manager for an international brand added: "If weshift our order elsewhere, like China or Sri Lanka, then we haveto pay 25 cents more for per unit of bottom denim (pants).

"But if we consider the ultimate consequences of such unrestin Bangladesh, then the cost is higher than 25 cents. In thatcase we will look for other options, instead of Bangladesh."

Wages are fixed by factory owners, the government andunions. However, many factories do not keep to stipulated wages.

Despite calls to adjust wages in line with inflation, thegovernment has said it had no immediate plan to review the wagestructure -- rather it will make available cheaper food to theworkers.

Zaidi Sattar, chairman of the Policy Research Institute ofBangladesh, a leading think tank, said although garmentfactories had been successful in Bangladesh, there was a dangerof buyers looking elsewhere.

"Wages have to rise, commensurate with productivity andinflation. There is also much to be done on improving workingconditions. This is improving slowly, as more and more factoriesreach compliance standards," said Sattar.